Cyclone Metals Limited (ASX: CLE) has acquired a key tenement, P47/1812, at the 100% owned Nickol River Gold Project, located 10km east of Karratha in the West Pilbara of Western Australia.
The acquisition of P47/1812, now creates a contiguous block of tenements in the central Nickol River gold project area, where test pitting has successfully recovered coarse gold.
The consolidation increases the targets for a maiden drill programme, based on an earlier Cyclone initiated Sub Audio Magnetics (SAM) geophysical survey.
It also consolidates the central drilling target area that includes contiguous tenements M47/401, M47/421 and M47/577. The consolidated area at Nickol River covers the original gold mining leases owned by Kerry Harmanis’s, Sir Samuel Mines NL, and included in their prospectus, which later was renamed Jubilee Mines NL.
The recent pitting programme indicated that this central target area represents the first target area for the maiden drill program. All the test pits were over historically prospected and worked ground, with recovered gold thought to be a small indication of the eluvial gold found over 140 years.
Cyclone Metals Director Will Scott said the most pleasing aspect of the pit programme was the extensive reef structures that were uncovered.
“Only a few reef systems are visible from the surface and we believe that a drilling programme utilising information from the SAM survey and the tests pits, can define the primary gold mineralisation.
“It is with great pleasure I confirm that the acquisition of P47/1812 gives Cyclone Metals the opportunity to design a robust drill programme over the central portion of the project area utilising the information from the test pit programme and the Sub-Audio Magnetics interpretation from Southern Geoscience Consultants, and we hope the drills will be turning soon.”
The proposed drilling programme will focus on tenements M47/401, 421, 577 and P47/1812 with the aim of testing the reef system to a depth of a maximum of 100 metre.
A Program of Work (POW) will be submitted shortly to DMIRS.
Acquisition Term
The company will issue 60,000,000 fully paid ordinary shares at a deemed issue price of $0.002 per share and 30,000,000 unlisted options with an exercise price of $0.003 each expiring two years from the date of issue to Stonefield Developments Pty Ltd for the acquisition of lease number P47/1812.
Completion of the acquisitions is conditional upon conditions considered customary for a transaction of this nature.